The article presents an overview of ten mutual funds that have demonstrated exceptional performance over the past ten years. While the funds exhibit impressive metrics, investors should remember that past performance doesn't guarantee future results, requiring thorough research and consultation with professionals before making investment decisions.
Investing in mutual funds can be a rewarding journey, but it requires careful analysis and consideration. One way to assess the potential of mutual funds is to observe their performance over a substantial period, such as a decade. In this blog, we will offer insights into the consistency and resilience of these funds, shedding light on their ability to navigate various market conditions.
Examining mutual fund performance
There are several criteria and metrics to assess the performance of a mutual fund within its specific investment category or asset class. Below are a few key ones:
- Returns: Undoubtedly the most important factor, mutual funds can be objectively judged on their historical returns. Comparing the fund’s past 1,3, and 5-years figures with relevant indexes and benchmarks would give a fair indication of its performance in relation to the broader market.
- Risk-Adjusted Returns: Using metrics like Sharpe ratio, Sortino ratio, or Treynor ratio, you can assess the risk-adjusted return of a mutual fund. The higher the ratios, the better its risk-adjusted performance.
- Asset Under Management (AUM): If the fund has a high AUM, it might impact its flexibility. On the other hand, a very low AUM leads to liquidity issues and higher expense ratios.
- Expense Ratio: The lower the expense ratio, the better it is for the investors as they leave a higher percentage as available returns.
- Alpha and Beta: A positive Alpha, or its risk-adjusted performance to benchmark indicates better performance than forecast. A Beta, or its sensitivity to market movements, of one indicates stability.
- Standard Deviation (Volatility): This measures the historic volatility of the fund’s return and the lower it is, the more stable the fund is.
- Turnover Ratio: A high turnover indicates increased costs of transaction and tax impact.
The Top 10 Mutual Funds That Have Excelled Over 10 Years
With an understanding of the above-mentioned criteria, we have listed the following ten mutual funds as the best performing.
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Oberweis Microcap Fund (NASDAQ: OBMCX)
With a strong micro-cap company focus, the fund offers a unique investment avenue. Geared towards capitalizing on growth opportunities within smaller market capitalizations, the fund aims to provide the potential for high returns. By targeting companies with market capitalizations of $600 million or less, the fund taps into the potential for substantial expansion often seen in early-stage growth companies.
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ProFunds NASDAQ-100 Fund (NASDAQ: OTPIX)
This fund strategically invests across multiple industries. This includes technology, retail, and biotechnology, with holdings like Meta Platforms, Inc. (NASDAQ: META), NVIDIA Corporation (NASDAQ: NVDA), Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Microsoft Corporation (NASDAQ: MSFT). With a ten-year gain of 16.28% and a four-star MorningStar rating, the ProFunds NASDAQ-100 Fund showcases its potential to provide competitive returns while focusing on diverse market sectors.
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Baron Focused Growth Fund (NASDAQ: BFGFX)
The fund stands out as a high-performing mutual fund that zeroes in on small and mid-sized companies in the US with the potential for significant long-term expansion. Its investment strategy is centered around capital appreciation, achieved by identifying undervalued companies poised for growth. Noteworthy holdings like CoStar Group, Inc. (NASDAQ: CSGP), Hyatt Hotels Corporation (NYSE: H), Arch Capital Group Ltd. (NASDAQ: ACGL), and Tesla, Inc. (NASDAQ: TSLA) reflect the fund's focus.
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Fidelity OTC Pt (NASDAQ: FOCPX)
The Fidelity OTC Pt (NASDAQ: FOCPX) offers investors a compelling avenue for capital appreciation with assets allocated to Nasdaq 100 index stocks and over-the-counter stocks showing significant growth potential. This mutual fund focuses primarily on technology companies, emphasizing growth as well as value stocks. Its holdings include major players like Meta Platforms, Inc. (NASDAQ: META), Alphabet Inc. (NASDAQ: GOOG), Amazon.com, Inc. (NASDAQ: AMZN), Microsoft Corporation (NASDAQ: MSFT), and Apple Inc. (NASDAQ: AAPL) which collectively account for a bulk of its portfolio.
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Rydex NASDAQ-100 Fund (NASDAQ: RYOCX)
The Rydex NASDAQ-100 Fund presents investors with a strategic avenue to align their investments with the Nasdaq 100 index's performance. By investing in companies who match the performance of the index, this fund aims to provide returns that closely match the Nasdaq 100's movements.
5. Fidelity Growth Company Fund (NASDAQ:FDGRX)
The Fidelity Growth Company Fund emerges as an attractive choice for investors aiming to tap into robust growth prospects. With a core focus on capital appreciation, the fund strategically directs its investments toward companies poised for substantial expansion. This approach has translated into impressive performance, as evidenced by its notable year-to-date gain of 38.12%.
4. Shelton Capital Management Nasdaq-100 Index Fund (NASDAQ:NASDX)
The Shelton Capital Management Nasdaq-100 Index Fund provides investors a direct avenue to align their investments with the performance of the Nasdaq-100 Index, encompassing major technology and non-financial companies. As a passive investment strategy, the fund enables investors to access potential growth within the dynamic technology sector.
3. VALIC Company I Nasdaq-100 Index Fund (NASDAQ:VCNIX)
The VALIC Company I Nasdaq-100 Index Fund (NASDAQ: VCNIX) stands out for its robust performance, evidenced by its impressive year-to-date gain of 42.50%. This fund provides investors a direct pathway to align their investments with the Nasdaq-100 Index, offering exposure to major technology and non-financial companies.
2. Victory NASDAQ-100 Index (NASDAQ:USNQX)
The Victory NASDAQ-100 Index Fund (NASDAQ: USNQX) showcases impressive performance, having achieved a remarkable year-to-date gain of nearly 42%. With a solid track record, the fund has maintained an average return of 18.31% over the past ten years, highlighting its consistent ability to generate competitive returns.
1. Baron Partners Fund (NASDAQ:BPTRX)
The Baron Partners Fund (NASDAQ: BPTRX) stands as a notable investment option with a strong track record, boasting a commendable ten-year gain of 20.69%. As an actively managed fund, it focuses on capital appreciation by investing in growth-oriented companies.
In Conclusion
While the mutual funds mentioned above have displayed impressive performance metrics, it's crucial to remember that past performance is not a guarantee of future results. You should conduct thorough research, understand your risk tolerance, and align investments with your financial goals. You can also consult with financial professionals before making investment decisions.
Disclaimer
The investment options and stocks mentioned here are not recommendations. Please go through your own due diligence and conduct thorough research before investing. Investment in the securities market is subject to market risks. Please read the Risk Disclosure documents carefully before investing. Past performance of instruments/securities does not indicate their future performance. Due to the price fluctuation risk and the market risk, there is no guarantee that your personal investment objectives will be achieved.